Traditionally speaking, the spreads between the 10-year and mortgage rates is 1.60%-1.80%. Right now, the difference between them is 2.60%. However, compare that to the worst levels last year, when the spread got as high as 3.10%. That’s a 0.50% difference in rates. For the rest of the year, it’s all about the labor market.
My model for inventory growth with higher mortgage rates came crashing down last week. After two weeks of significant increases, inventory growth slowed dramatically and is far from my 11,000-17,000 growth model with mortgage rates over 7.25%. Did the recent dip in mortgage rates play a role here or is this the average choppy weekly
Mortgage rates slipped this week, but homebuyers are waiting for a more significant drop before entering the expensive housing market. The average rate for 30-year mortgages remained below the 7% mark, but not by much, settling at 6.91% on Thursday, according to Mortgage News Daily. Another measurement tracking weekly average rates for the 30-year loan
Mortgage rates had a chance to break to new highs this year, but the Federal Reserve took a moderate tone at the last Fed meeting. We saw the benefit of lower mortgage rates with the last two existing home sales reports, which showed growth. Then mortgage rates rose, facilitating five weeks of negative purchase application
A serious 10-year yield and mortgage rate talk My work on housing moves around the 10-year yield and the economics that move that. The growth rate of inflation has fallen a lot on the year-over-year data, but mortgage rates haven’t gone down, which isn’t surprising to me as my mantra has been: “Labor over Inflation.”